Mexico's election: Economy and energy vital issues in next Sexenio

Such a financial burden severely restricts the company’s ability to deal with the challenge of reversing declining oil production, meeting growing domestic demand for fuel supplies and exploring for and finding new oil and gas reserves.

In order to give Pemex greater financial freedom, that burden must be reduced. However, if the next government reduces the tax take from Pemex, it will have to replace that income with other sources.

Despite fiscal reforms in 2007 and again in 2009, Mexico has one of the lowest tax takes in the world as a percentage of GDP, and the government must dramatically raise its income to meet crucial investment requirements in education, infrastructure, poverty reduction and employment creation over the next six years.

The need for fiscal reform in Mexico and efforts to redress ongoing issues confronting Pemex are critical for the next government and the two cannot and should not be separated as policy efforts are developed in the next Sexenio.

Regardless of who wins next Sunday, Mexico will be best served if the next resident of Los Pinos spends the transition period preparing to immediately confront these vital economic and energy issues.

Martin is the director of the Energy Program at the Institute of the Americas at the University of California San Diego. Wood is director of the International Relations Program at the Instituto Tecnológico Autónomo de México (ITAM) in Mexico City.